How are child support payments taxed?

by Russell Alexander on November 30, 2017

Parents who receive child support payments are not required to include those payments in their taxable income. Payor parents are not permitted to deduct these child support payments from their taxable income.

The result of this rule is that parents who receive child support payments are able to spend more of their support payments on their children.

There is an exception to this rule if your child support arrangements were made prior to April 30, 1997. If you have an old agreement that was made before 1997, you can elect to have the current rules apply. However, both you and your spouse must agree to the new rule, and complete a form T1157. If you would like this rule to apply but your spouse does not, you will have to go to court to request a new child support order.

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About Ontario Divorce Help

Ontario Divorce Help is written by Russell Alexander, a divorce and family law lawyer based in Ontario, Canada. For nearly twenty years, Russell's firm has helped clients who are going through a separation or divorce. You can find more of Russell's online commentary via Twitter, Google+, LinkedIn, or on the firm's Facebook page.